January 20, 2017 / 8:14 AM / 3 years ago

Edenred shares fall as major shareholder Colony sells its stake

PARIS, Jan 20 (Reuters) - Shares in French voucher and prepaid card provider Edenred fell by around 3 percent on Friday after major shareholder Colony Capital sold its entire 11.2 percent stake in the company.

Colday E, a vehicle of private equity firm Colony Capital, said 5.53 percent of the capital had already been sold off-market to an unnamed investor, and it would sell the remaining 5.68 percent via a private placement to institutional investors.

It added that the 5.68 percent stake was sold at 19.41 euros per share, a 3 percent discount from Thursday’s closing price of 20.01 euros, for a total amount of 257.5 million euros ($275 million).

A source close to the matter said the off-market transaction was also sold at a price of around 19.41 euros, bringing the total value of the deal to around 500 million euros. Edenred declined to comment on the deal.

Colony Capital was Edenred’s second-largest investor after Capital Group Companies, which owns a 19.83 percent stake.

Edenred was listed in 2010 and priced at the time at 11.40 euros after being split from its parent AccorHotels

Edenred sells prepaid meal vouchers that employers offer to workers.

It is also developing products such as fuel cards, a sector that is growing faster than other employee benefit schemes, notably in recession-hit Brazil, as companies seek to control business expenses more effectively.

$1 = 0.9363 euros Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta and Jean-Michel Belot

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